USD/CAD: Loonie boosted by strong jobs report, USD/CAD fall stop
Canadian job growth surged in December as full-time employment finally rebounded, turning concern about a weak labor market on its head and raising hopes the economy may have turned the corner after two years of pain caused by low oil prices.
Employers added 53.7k jobs in December and 214k in 2016 as a whole, the best annual growth since 2012, bucking market expectations for a month without job growth in a year where part-time and lower-quality jobs dominated employment. December's gains included a jump of 81.3k full-time jobs, were in sectors considered high-quality, and came even in regions where the long slump in oil prices had taken a toll - all qualities that should reassure the Bank of Canada that the long economic malaise may be over.
The jobs report was accompanied by separate trade data showing the first trade surplus in more than two years in November, suggesting exports are finally picking up steam as the U.S. economy strengthens.
Canada's central bank cut interest rates two times in 2015 in a bid to revive the struggling economy, and has held borrowing costs steady in 2016 even as its U.S. counterpart, the Federal Reserve, began what is expected to be a series of rate hikes to hold U.S. inflation in check as that economy grows.
The USD/CAD drop stopped at 1.3179 on Friday, slightly above the 38.2% fibo of May-December rise and rising trendline, which is a strong support level. Our long-term USD/CAD outlook remains bearish and we will be looking to get short on upticks. We keep our sell order at 1.3330.
GrowthAces.com - Daily Forex Trading Strategies
Employers added 53.7k jobs in December and 214k in 2016 as a whole, the best annual growth since 2012, bucking market expectations for a month without job growth in a year where part-time and lower-quality jobs dominated employment. December's gains included a jump of 81.3k full-time jobs, were in sectors considered high-quality, and came even in regions where the long slump in oil prices had taken a toll - all qualities that should reassure the Bank of Canada that the long economic malaise may be over.
The jobs report was accompanied by separate trade data showing the first trade surplus in more than two years in November, suggesting exports are finally picking up steam as the U.S. economy strengthens.
Canada's central bank cut interest rates two times in 2015 in a bid to revive the struggling economy, and has held borrowing costs steady in 2016 even as its U.S. counterpart, the Federal Reserve, began what is expected to be a series of rate hikes to hold U.S. inflation in check as that economy grows.
The USD/CAD drop stopped at 1.3179 on Friday, slightly above the 38.2% fibo of May-December rise and rising trendline, which is a strong support level. Our long-term USD/CAD outlook remains bearish and we will be looking to get short on upticks. We keep our sell order at 1.3330.
GrowthAces.com - Daily Forex Trading Strategies
